UPDATED 6:04 PM CDT Apr 20, 2013

http://www.kcci.com/news/central-iowa/New-Iowa-Financial-Investigation-Team-announces-money-laundering-investigation/-/9357080/19828810/-/72k2sc/-/index.html

NEVADA, Iowa —The Iowa Department of Public Safety executed several search warrants early Saturday regarding "Operation Landlord," a large-scale money laundering investigation involving a former Department of Transportation employee.

The searches took place in four locations in Story, Polk and Woodbury counties.

In addition, David Weigel and Grady Marx were arrested and are accused of stealing more than $407,430 from the Iowa Department of Transportation.

Weigel, 56, of Nevada, Iowa, was charged with first-degree theft, conspiracy to commit theft, on-going criminal conduct, money laundering and felonious misconduct in office. He was being held Saturday on $55,000 bond in the Polk County Jail.

Marx, 59, of Sioux City, Iowa, was charged with first-degree theft, conspiracy to commit a felony, ongoing criminal conduct and money laundering. He was being held Saturday in the Woodbury County Jail on a $50,000 bond.

A news release said the two arrests came after a two-year investigation. Iowa Department of Transportation Director Paul Trombino asked for help from the state’s Department of Public Safety after finding suspicious land sales, land leases and mowing contracts for DOT land.

Weigel is accused of selling DOT land to various people and companies while keeping a portion of the funds, according to the release. He is also accused of charging various people for maintaining DOT lands and keeping the money.

Marx is accused of conspiring with Weigel to deprive the DOT of at least $237,360 and of receiving payment for the sale of DOT-owned land. He is also accused of funneling cash to Weigel after receiving payment from the DOT for mowing its lands, the release indicated.